Question 1

"The inability to satisfy the demand for an item" is the definition of a

Question 2

For the single-period inventory model, solving for the optimal order quantity involves using

Question 3

Inventory position is computed using all the following except

Question 4

Independent demand

Question 5

Demand that is stable over time is called ____.

Question 6

Demand that varies over time is called ____.

Question 7

Average inventory in the EOQ model is defined as

Question 8

Additional inventory kept over and above the average amount required to meet demand is called ____ inventory.

Question 9

Backorders ____.

Question 10

Costs associated with inspecting, unpacking and putting into storage incoming inventory are components of ____ cost.

Question 11

Costs associated with backordering a product are called ____ costs.

Question 12

Which of the following is not a key assumption underlining the classic economic order quantity (EOQ) model?

Question 13

Inventory that represents partially completed products waiting further processing is called ____ inventory.

Question 14

Which is not an advantage of the periodic review system?

Question 15

Inventory that acts as a buffer between workstations in flow shops or departments in job shops is called ____ inventory.

Question 16

Setting order sizes and schedules for individual subassemblies and resources by week or day fits best with which level of the

generic framework for resource planning?

Question 17

Capacity requirements are computed by multiplying the number of units scheduled for production at a work center by

Question 18

If forecast demand exceeds the total factory or supply capacity, managers might simply decide not to meet forecast demand.

This decision would most likely be made at which planning level?

Question 19

____ are the total demand for an item derived from all of its parents.

Question 20

Which of the following is not an aggregate planning decision option?

Question 21

Which lot sizing rule might base the order quantity on a standard-size container or pallet load?

Question 22

The Lot-for-Lot (LFL) rule

Question 23

Which lot sizing rule might use the EOQ calculation?

Question 24

The words "product family," "budget allocation" and "long-term" fit best with which level of the generic framework for resource

planning?

Question 25

The primary output of an MRP system is a time-phased report that gives all of the following except

Question 26

Which lot sizing rule is best when inventory carrying costs are high and setup/order costs are low?

Question 27

A(n) ____ is a statement of how many finished items are to be produced and when they are to be produced.

Question 28

If a work center load report indicates insufficient capacity, options for correcting the problem include all of the following except

Question 29

Promotion of weekly discount airfares by an airline would be an example of ____.

Question 30

The purpose of aggregate planning is to